vespuce

Decoupling Of Physical Gold And Paper Gold Prices

$fark$ - I've never heard of a gold bug that trades on margin - that is only for disciplined and controlled traders like yourself. Anyone who has even a remote interest in long term wealth preservation knows that physical holdings are the only option. Most articles and commentators here refer to fully paid up holdings (physical, ETF's). If you want to talk about futures and short term price movements, a day trading website might be more worthwhile.

Seacher - I reckon stocks and property are the two biggest asset classes for sucking in new investors with ever higher prices. As the current decline in metals has accelerated, retail demand has gone "off the charts" according to the biggest US dealers. I think this is very rare for any asset class. 25% and 40% declines in 6 months approx for G&S and the public are buying (or at least trying) in record quantities. Is there any historic precedence for this, in any asset class?

Decoupling Of Physical Gold And Paper Gold Prices

Under the current monetary system, the dollar and all other fiat currency are unlikely to be a good store of wealth (ie maintain purchasing power) thanks to the greed and self interests of those in control of money supply. Who doesn't like free money?

Indian buying and 'seasonal strength' may not be enough to kick start a new up leg. No one knows, and long term physical holders should not care. It may take years to reach new highs again, but that doesn't change the fundamentals.

If history is any guide, the current high retail premiums probably won't last, as there is no evidence of shortage in the OTC/physical market. It should only be a matter of time before fabrication supply meets the higher demand. Hopefully by early next year we can all get our hands on as much retail supply as we need at lower prices and lower premiums.

Decoupling Of Physical Gold And Paper Gold Prices

$HARK/Shark/Fark whatever....I read every word of your posts, maybe you are right, we will see. At least you are an excellent trader, and have a sense of humour (albeit offensive to many). It would be a good lesson for us if you tell us about your next GC trade (in advance).

However, just one pointer on the article above, the author mentioned his purhcase was in Euros, and therefore has likely not lost any capital over the last month (avg EUR 559.62 vs current price EUR 560.27). For investors like me in the UK, physical metals aren't doing too badly as the pound is falling faster (in $ terms). Average GBP closing price for gold in August is £444, vs current price £455.